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500,000 face a £1,080 tax blow from HMRC following a rule change. Thousands of savers could face new tax charges of up to £1,080 after the Labour Party Chancellor cut the Cash ISA allowance from £20,000 to £12,000.

7.1 million people paid into a Cash ISA in 2022/23, and more than a quarter saved above the new £12,000 limit. Of those, almost 1.5 million were basic-rate taxpayers and 462,000 were higher-rate taxpayers.

Andrew Prosser, Head of Investments at InvestEngine, said: "Our analysis shows that almost 1.5 million basic-rate taxpayers and just under half a million (462,000) higher-rate taxpayers deposited more than £12,000 into their Cash ISA in the last financial year; now that the allowance has been cut down to £12,000 they will need to find somewhere else for this ca

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